Kooth Doubles Revenue to £66.7M, Reports Strong US Growth in Full Year Results
Why we think this is very good
The financial results are exceptionally strong, with revenue doubling to £66.7 million and a significant turnaround from an operating loss to a £9.2 million profit. The 598% increase in adjusted EBITDA to £15.8 million is particularly impressive. The successful expansion into the US market, now representing over 70% of the business, demonstrates strong growth potential. The company's solid cash position of £21.8 million provides financial stability for future growth. While there are some challenges in the UK market and expectations of normalizing EBITDA margins, the overall performance and outlook remain very positive. The low price-to-sales ratio of 0.73 suggests the company may be undervalued relative to its current performance.
Key Points
- Revenue doubled to £66.7 million, a 100% increase from 2023
- Operating profit of £9.2 million, compared to a £2.3 million loss in 2023
- Adjusted EBITDA increased by 598% to £15.8 million
- Net cash position of £21.8 million at year-end
- US expansion successful, now representing over 70% of the business
- Reached 75,000 young people across all 58 counties in California by February 2025
- Maintained position as NHS England's largest single access provider for mental health support for under 18s
- Expects continued growth in the US, particularly in California
- UK environment remains complex but stable
- Low price-to-sales ratio of 0.73 suggests potential undervaluation
Summary
Kooth plc has delivered exceptional financial results for the year ended 31 December 2024. Revenue doubled to £66.7 million, driven primarily by contracts with the State of California. The company reported an operating profit of £9.2 million, a significant turnaround from the previous year's loss. Adjusted EBITDA increased by 598% to £15.8 million. The company's US expansion has been highly successful, now representing over 70% of the business, with 75,000 young people reached across all 58 counties in California by February 2025. Despite challenges in the UK market, Kooth maintained its position as NHS England's largest single access provider for mental health support for under 18s. The company ends the year with a strong cash position of £21.8 million. Looking ahead, Kooth expects continued growth in the US, particularly in California, while acknowledging ongoing complexities in the UK market. The company's low price-to-sales ratio of 0.73 suggests potential undervaluation relative to its current performance.